Wassup, forex brothas! It’s all about the Loonie on today’s canvas, as I bring to you short and swing trade setups on USD/CAD and CAD/JPY. Get ’em while they’re hot!
Reversal alert! After jumping from 81.50 to 83.50, it looks like CAD/JPY is ready for some retracement.
The 82.50 level is a good place for Loonie bulls to attack since it lines up with not only an SMA crossover, but also the 61.8% Fib retracement on the 1-hour time frame.
Will CAD/JPY follow an uptrend after selling off for so long? Or are we actually looking at a fakeout over here? Whichever bias you choose to trade, remember to keep your stops wide for currency crosses like these!
Here’s one for the Loonie bears out there! USD/CAD is lollygagging around the 1.2850 levels, which isn’t surprising since it lines up with a trend line and 50% Fib retest, as well as a previous resistance on the 4-hour time frame.
The cherry on top of the sweet opportunity is an oversold stochastic signal. Think USD/CAD is ready for an uptrend?
Buying at current levels could get you a sweet reward-to-risk ratio especially if you place your stops just below the trend line and aim for the previous highs near 1.3000.
If you’re not a fan of the Greenback, though, then you could also wait for the pair to break below the 100 SMA and shoot for a downside break play instead. Just remember to use your best risk management practices, aight?